RUBBER AND OIL

Otago Witness, Issue 2928, 27 April 1910, Page 26

RUBBER AND OIL

LONDON, April 19. There was a wild scramble for rubber j shares at the Chartered Bank of India, ! which’ is the banker for four companies i the prospectuses of which were issued I yesterday. j The bank was besieged for two hours I by men, women, and boys, pandemonium ’ reigning inside despite the cashier’s j assui ances that the lists were closed a 1 few minutes after opening. | The 2s shares of one company rose to 16s during the day. j One thousand seven and fifty I new companies have been floated in Loni don since the new year, including 200 rubber companies. April 20. Best raw rubber has risen 6d during the fortnight, , and averaged 12s sd. Manufacturers are contracting for rubber for 1912 at 8s a p'ound. Further oil and rubber companies have been floated. Several newspapers predict an early reaction, and some rubber prices dropped to-day. April 21. i The prospectuses of nine rubber and | oil companies, with a capital aggregating I £24,400,000, were issued to-day. Rubber and oil prices are declining. April 22. The authorised capitals of 506 rubber | companies total £92,030,000, and if the : premium paid on many of the shares is included, the money involved in the rubber market will be £100,000,000. April 25. The United Malaysian Rubber Company, with a capital of £2,000,000 in £1 shares, is issuing 400,000 at par, whereof the directors and their friends have ap- ! plied for 300,000, which will be allotted i in full.

THE BOOM IN RUBBER

WHY IT HAS ARRIVED. FABULOUS PROFITS FROM PLANTATIONS. The rush for rubber shares has been a feature of the London stock market lately, and if the investor's money is well laid out there is. a o&rtainty of almost fabulous returns. An ex-Wellingtonian (Mr Finlay M'Leod), keenly interested in the rubber industry as a result of a comprehensive trip through the East, has registered a rubber company operating in the Federated Malay States. He is visiting New Zealand just at present, and gave some remarkable facts about rubber to a New Zealand Times representative, who asked him to enlighten New Zealanders as to the reason for the big rush for rubber shares. "Money talks," is a well-accepted axiom, and it was probably with this in his mind that Mr M'Leod. • without comment, quoted the following dividends which were paid last year by rubber companies whose plantations are in the Federated Malay States, chieflv in the State of Selangor: Per cent. Selaneor 2834 Inchkinneth 94-£ Pataling 177 Valambrcssa 155 Tigga ... 155 Perack 138 Highlands and Lowlands 29 THE YIELD PER ACRE. "But these arc trifles compared with the Belgian estate known as the ' West Country,' " continued Mr M'Leod. "They make huge profits, but do not publish the amounts. The Agricultural Bulletin issued by-the Federated Malay States shows that a return may be expected from jungle land planted with rubber trees of £lll per aore when the trees are two years old; £5lO after five years; and £1142 per acre after 10 years. An estate manager told me that it pays to put rubber on the London market at 9d per lb, so that if the commodity dropped to 2s the lowest price experienced in 26 years, it would still save a return of 20 to 30 per cent, in dividends.." And how Ions: does the plantation yield these rich dividends? " Rubber trees have been yielding for a hundred years," replied Mr M'Leod, "and nobody has seen the end of it. The whole process of gatherinrr and dealing 1 with rubber is so simple. Why, a co-operative dairy factorv is a complicated thing compared with it." WIDE OBSERVATION. The ex-Wellingtonian's travels through tho East were extensive. He left his home 11 months ago, and visited North Queensland, Thursday Island, New Guinea, Dobo, Mocassar, Umbuyno, Java, Borneo, tho State of Jahore, and the Federated Malay States. All the while he had his eyes, open for lubber plantations end the conditions for production, and he found that the Malay States provided by far the best conditions for the industry. Tho rubber boom was not at its height when he was there, but it

was expected. One planter, about 20 miles from the State capital, possessed a plantation of e>so acres of eight-year-old bearing trees. From this, Mr M'Leod discovered that be netted £52.000 per annum with rubber at 5s per pound. "With rubber at lis 6d," added Mr M'Leod, "you can guess the good thing he possesses. Yet 1 am of opinion that in the rush, some people will invest ;n rubber companies holding rights of land where conditions are against successful rubber growing, and where the supply of labour is insufficient. The latter objection applies to New Guinea Three things are essential for successful rubber growing—namely, suitable soil, large and equalised "rainfall, together with heat, but the most important of all is a plentiful supply of labour. The Federated Malay States are undoubtedly at the top in regard to these advantages. The result of my visit has been to register the Standard Rubber Oompany of Sek.mgor in Sydney, with a capit.nl of £50,000, which has been obtained without advertisement or the employment of brokers"